Takeaways

• Google and Ormat have signed a power purchase agreement (PPA) to supply up to 150MW of geothermal energy for data centers in Nevada.
• The deal is structured through NV Energy’s Clean Transition Tariff (CTT) to accelerate firm, carbon-free power projects.
• The agreement supports grid decarbonization while meeting rising electricity demand driven by AI and digital infrastructure.

Google and Ormat Technologies have signed a new power purchase agreement (PPA) that will deliver up to 150 megawatts (MW) of geothermal energy to support Google’s data center operations in Nevada.

The agreement was signed through NV Energy under its Clean Transition Tariff (CTT) program. The CTT was developed in 2024 in collaboration with Google and NV Energy’s parent company, Berkshire Hathaway Energy, to help accelerate investment in next-generation clean technologies.

Under the deal, Ormat will develop a portfolio of new geothermal projects across Nevada. These projects are expected to begin commercial operations as early as 2028, with additional facilities coming online through 2030. The 15-year contract terms will begin once the first project becomes operational and will extend 15 years beyond the final project’s commercial operation date.

Read More: AI Data Centres Threaten Big Tech’s Net-Zero Pledges

Supporting Clean-Firm Power for Data Centers

The Clean Transition Tariff was designed to support “firm power,” stable and reliable energy sources that can operate around the clock. Early-stage technologies such as geothermal, advanced nuclear, and long-duration storage often face regulatory and financial barriers. The CTT structure helps overcome these challenges by aligning clean energy generation directly with customer electricity demand.

Briana Kobor, Head of Energy Market Innovation at Google, said the agreement demonstrates a scalable model for large customers to partner with utilities and technology providers.

By adding up to 150MW of new clean-firm geothermal capacity in Nevada, Google aims to strengthen the reliability of the local power system while ensuring that other ratepayers are insulated from additional costs. The structure fully covers the costs associated with the company’s electric service, helping advance overall grid decarbonization.

AI Driving Electricity Demand

The agreement comes at a time when artificial intelligence (AI) is sharply increasing electricity demand across the technology sector. Data centers, which power cloud computing and AI workloads, require large amounts of reliable energy.

Doron Blachar, Chief Executive Officer of Ormat Technologies, said geothermal power is uniquely positioned to provide reliable, carbon-free energy to support this growth. Unlike solar and wind, geothermal energy offers consistent output, making it well-suited for energy-intensive facilities such as data centers.

Blachar added that the portfolio PPA provides long-term revenue visibility for Ormat and supports its expanded exploration and drilling activities undertaken over recent years.

Expanding Geothermal Capacity in Nevada

Through this agreement, Ormat will continue investing in geothermal development in Nevada, a state known for its strong geothermal resources. The portfolio approach allows multiple projects to be added over time, providing flexibility and scalability.

Also Read: Understanding AI Pollution: Environmental Impact and Sustainable Solutions

The deal marks another step in the push toward clean energy procurement for data centers. As electricity demand continues to rise, partnerships like this one highlight how geothermal energy and innovative tariff structures can help companies meet their climate goals while supporting a more reliable and decarbonized grid.

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Source: ESGtoday